Warranty Strategies and Organizational Performance of Licensed Motor Vehicle Assemblers in Kenya

This study examined the influence of warranty strategies on the organizational performance of licensed motor vehicle assemblers in Kenya. Warranty strategy was conceptualized as a critical post-sale mechanism encompassing policy design, claim management, service responsiveness, and the integration of warranty data into product and process improvement. Guided by the Resource-Based View and Competitive Advantage Theory, the study explored how internal capabilities and strategic differentiation shape warranty effectiveness and performance outcomes. A descriptive research design was employed, targeting all four licensed assemblers using a census approach. Structured questionnaires were administered to 110 respondents, with a valid response rate of 88.18%. Data was analyzed using descriptive statistics, reliability testing, and regression analysis. Findings revealed that warranty strategies moderately contribute to organizational performance by enhancing customer satisfaction, operational efficiency, and brand trust. The study concludes that strengthening warranty terms, streamlining claim procedures, and improving communication are essential for enhancing customer confidence and sustaining competitive advantage. Recommendations include benchmarking against global best practices and leveraging digital warranty management systems.